Q: Why do I need independent professional risk management?
A: While Private Banks, Retail Banks and Independent Financial Advisors (IFAs) provide financial advice and assistance in accessing financial products few, if any, actually do detailed and independent analysis of the financial risks being run by their clients. The reason for this is that financial products and their can behave in complex ways and it really takes someone with a lot of quantitative expertise to unravel and quantify this complexity. Without such support investors can be exposed to financial risks they do not fully understand.
Q: How will an independent risk assessment help me?
A: At Analyse Risk our job is to help ensure that your wealth is protected. Our job is not to make you wealthy; our job is to keep you wealthy. We do this by ensuring you are fully aware of the risks you face when you invest and report on how this risk could evolve as your investments grow. Once a client, we offer ongoing assessment and provide an “Emergency” report in times of systematic market stress to help you act proactively rather than reactively to violent market downturns.
Q: How much will an independent portfolio risk assessment cost?
A: Fees are dependent on portfolio size and complexity. The first consultation is free. There is no minimum but typical fees range from about US$500 upwards.
Q: How much will an independent risk assessment help me save?
A: As professional risk managers there have been many occasions when we have saved firms considerable amounts of money ranging from a few thousand US$ to tens of millions of US$. We have also helped private individuals avoid large losses, particularly in times of adverse market conditions with ranges from low to substantial portions of their net worth depending on the original risk factors in the portfolio. Sadly, our services were not available during the 2008 financial crisis when many investors lost their entire fortune or a considerable part thereof. In many of these cases losses occurred because of very poor risk management. Had these investors been able to access our services many of the losses could easily have been avoided.
Q: How much will an independent fee analysis help me save?
A: Fee analysis alone can help our UK domiciled clients save over 60% on long-term investments, the figure varies by country and market but clearly 60% is a considerable amount. Our own estimates reveal typical savings from fee analysis alone to be of the order of 10% to 20% on long term investments. A 1-2% annual fee does not sound much but the effect can be significant when compounded in a low growth portfolio over many years.
Q: Why can’t I go to my IFA/Wealth Manager for a risk appraisal?
A: Most IFAs and Wealth Managers are simply not in a position to provide truly independent financial advice. How could they when they sell the same products as the risk they are advising on? It is simply unfair to expect wealth managers and IFAs to sell and manage financial products, give financial advice and at the same time expect them to be independent. Moreover, your IFA will probably not see your overall portfolio; he or she may see a part of it. At Analyse Risk we examine your entire portfolio and quantify the risks associated with it so you have a complete picture of the financial risks you running and in addition, the financial risks you could be running as your investments evolve.
A modern day financial portfolio is a complex product and is affected by a myriad of financial variables. Investment banks, pension funds, insurance companies all employ many highly trained mathematicians to unravel and understand these complexities. At Analyse Risk we are simply offering you, as an individual, access to the same methodologies and techniques that large financial institutions use to manage their risks
Q: How do risk management services differ from wealth management services?
A: At Analyse Risk our job is to protect your wealth by helping you understand the risks in your portfolio and investment strategy and so help you make, impassionate, informed choices about your investments. Your IFA or wealth manager will help make you money; we will help you keep it.
